What is stagflation?

Stagflation refers to the economic situation where there are high levels of inflation, low economic growth, and high unemployment. The word stagflation has essentially been derived by merging the words “stagnated” and “inflation”; thus, it can be thought of as a stagnated economy with high levels of inflation.

The term stagnated economy refers to an economy that sees little or no growth in its GDP. High levels of unemployment are triggered by the inflation prevalent in the economy. These economic factors keep aggravating each other, thereby worsening the economic situation of the economy. Usually, in the scenario of stagflation, it is possible that any fiscal stimulus or monetary policy implemented to make the economic situation better could rather worsen the situation.


The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK